Class association risks 

Understand the different risks class associations face and how to mitigate them

Europe class association fleet

It’s important to understand the risks that clubs are exposed to when hosting class association events. As the RYA’s Official Commercial Insurance Partner, Gallagher, has provided the following summary to help.

What are the risks that class associations face?

Class associations can be exposed to risks similar to clubs and training centres when organising training and events, despite not owning the facilities or premises used.

If a session or event is arranged by the class association, the public liability risk can fall entirely with them, regardless of where the activity is taking place. The class association will likely be the organising authority issuing the Notice of Race (NoR) and manage the collection of entrance or participation fees.

Why do class associations need public liability insurance when events are hosted at RYA clubs?

It’s unlikely that the public liability insurance held by clubs will extend to cover individual class associations. Therefore, class associations can benefit from having their own public liability insurance policy. 

RYA clubs may be asked to host class association training and events, but it’s the running of the event or activity that public liability insurance can be needed for. Clubs may act as a host only and are not involved with processes such as the collection of entrance fees and the active running of the events. 

Whenever considering hosting a class association event, clubs are advised to check with their insurance providers. This is to ensure that their involvement (at whatever level it may be) is acceptable to their respective insurers and, therefore, covered.

How might the public liability exposure of a class association be reduced?

Class associations may enter into an agreement for the clubs to organise the training and events.  The club would issue the NoR and would, therefore, be deemed to be the organising authority. In such cases, class associations will typically not play a role in the collection of entrance fees or coordinate/organise activities on the day.

In these circumstances, the individual class association may have little risk exposure. However, checks should be made in advance with respective clubs in all circumstances to ensure that the event/activity is suitably covered under the club’s own public liability insurance policy.

Find suitable insurance to help provide cover

Gallagher is the RYA’s Official Commercial Insurance Partner, providing tailored cover to RYA affiliates and recognised training centres. 

To find out more about how Gallagher can help you and for further questions or advice on any insurance matter, contact the specialist RYA Gallagher Team

Information last updated October 2024.

The sole purpose of this article is to provide information on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links that were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss that may be suffered as a result of any person relying on the information contained herein.

Royal Yachting Association is an Introducer Appointed Representative of Arthur J. Gallagher Insurance Brokers Limited which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.